What is HR 3221?
15 Oct2008
Filed Under Buying · Tagged: Congress, Federal Housing Administration, Financing, real estate industry re-gain · Print This Article
That’s a good question. With all the news about rescue plans to remedy housing difficulties, it can be hard to make heads or tails of the facts. This is housing bill passed at the end of July that is separate from the other “rescue plans” we’ve been hearing about. Items you were hoping may have been addressed in the more recent plan may already be included in this earlier one that isn’t getting as much attention.
It’s called “The American Housing Rescue and Foreclosure Prevention Act.” The goal of the bill is to rescue struggling home owners and neighborhoods, and to encourage new customers into the homebuying market.
You can read details of the bill at the Library of Congress online.
Cong. Richard Neal, Chairman of the Ways and Means Subcommittee on Select Revenue Measures, says “the tax provisions in this bill are an appropriate mix of incentives … to help the housing and real estate industry re-gain their footing. And they offer struggling homeowners a life-line. This bill offers hope that if we can get this industry moving again and provide security for distressed homeowners, perhaps we can get the economy back on track.”
The bill is likely to affect home buyers and sellers in the following ways:
- Gives first-time home-buyers a temporary tax credit to encourage home-buying.
- Allows local governments to buy and restore foreclosed properties and put them back on the market in order to improve slumping neighborhoods and increase the desirability of those neighborhoods.
- Includes provisions to update the Federal Housing Administration (FHA) funding. This can expand the amount of funding to qualified home-buyers with greater safety.
The Wall Street Journal has posted a video story which further explains points of the plan.
It’s still a complicated plan, but should encourage both buyers and sellers who are overwhelmed with the news about housing. Buyers should understand that purchasing a home is still a great option,
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